Key federal government financial measures
Summary of financial assistance provided to individuals and business.
JobKeeper payment for employees
The JobKeeper payment helps businesses significantly impacted by the Coronavirus cover the costs of their employees’ wages, to keep as many Australians as possible in their jobs. Your employer will notify you if they intend to claim the fortnightly payment of $1,500 on your behalf.
Early release of superannuation
Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
Payments to support households
The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession cardholders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020.
Temporarily reducing superannuation minimum drawdown rates
The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21.
Boosting cash flow for employers update
Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is increased from $2,000 to $10,000.
An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments. This payment will appear as a credit in the activity statement and if it puts the account into credit, a refund will be paid in 14 days.
Small businesses with less than 20 employees can apply for a wage subsidy for the March, June and September 2020 quarters. The apprentice or trainee in question must have been in training at 1 March 2020. 50% of the apprentice or trainee’s wage will be subsidised, up to a maximum of $7,000 per quarter.
Financially distressed businesses
The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. The minimum threshold for creditors to issue a statutory demand increased from $2,000 to $20,000, for 6 months.
The Government has extended the time to respond to a bankruptcy notice increased from 21 days to 6 months and Directors will not be personally liable for insolvent trading for 6 months
Instant asset write off
The Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. Small businesses of under $10 million in turnover will revert to $1,000 following this.
The Government is introducing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. 50% of the cost of an asset will be immediately deductible upon installation. The remainder will be subject to the current depreciation rules.
This applies to all businesses with an annual turnover of less than $500 million until 30 June 2021.
NSW Payroll Tax
2020FY payroll tax relief
If grouped Australian wages are under $10 million, annual tax liability is reduced by 25%, no monthly payments for the months of March, April and May will be needed.
2021FY tax-free threshold increase
This has been increased from $900,000 to $1 million.